2
QuizMultiple Choice

Bankruptcy

Question 2 • FL-2102371-Personal Finance and Money Management

Which steps should be taken to get your finances in order and avoid filing for bankruptcy?

Answer
A
Invest all your savings in the stock exchange for quick returns.
B
Maximize your credit card usage to spread out your payments.
C
Take out loans to cover immediate needs and repay it over time.
D
Seek credit counseling to develop a customized debt management plan.

Explanation

Credit counseling can help you review your income, expenses, and debts, then create a realistic plan to manage repayments and avoid bankruptcy. A customized debt management plan addresses the underlying financial problem. Investing all savings for quick returns, increasing credit card use, or borrowing more can add risk or deepen existing debt.

AI-written and checked against the verified answer.

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